10 things you didn't know about Digital Business Loan

Starting a business or even running a business can be quite challenging, especially when it comes to money matters and managing finances. Having enough funds is essential to sustain and grow a business. That is why a business loan is an option worth exploring for business owners when in need of urgent funds. 

Business loans are unsecured loans, provided to self-employed individuals or organisations for their working capital requirements, and are repayable in Equal Monthly Instalments (EMIs). If you are considering a loan, here are 10 things you should know about Digital Business Loans: 

1. You Don't Require a Guarantor

In most cases, you do not require security or a guarantor for the loan. However, a co-applicant is advised to be taken on board. 

2. There are Provisions In Place for Unforeseen Events

Banks sometimes try and protect the loan by providing you with Life Insurance and a Health Insurance policy. 

3. There are Different Products/Schemes to Help You

It is effortless, and there are quite a few products and schemes to help you avail of a loan based on your business income, bank statements or GST returns.  

4. There Quite a Few Documents Required

Here is a list of the documents needed to avail a loan - Individual KYC (PAN & Aadhaar), Firm/Company KYC (Registration Certificate & address proof), ITR of last two years, and bank statements of the previous six months. There may be others as well; make sure to check with the bank.

5. There are Benefits if You are Register Under an MSME

You can avail of benefits on foreclosure charges, as well as on other government schemes. Udyam Registration Certificate needs to be furnished for the same.  

6. You Don't Need to Provide any Physical Documents

The digital process allows loan applications to be processed with soft copies or scanned documents.  

7. A Residence and Office Verification is Done

As with most loans, a bank mandatorily does residence and office verification checks before approving the loan application. 

8. You Are Charged Stamp Duty

The bank does charge stamp duty as per the respective state regulations. The stamp duty is automatically deducted from the loan amount through e-stamping. 

9. You Don't Need to Sign Any Physical Documents

The agreement can be digitally signed through the bank's Aadhaar OTP process for business loan disbursal.  

10. You can Register for the ECS for monthly EMIs

The ECS can be registered through a Digital Mandate process, which takes approximately 15 minutes. 

With IDFC FIRST Bank Business Loan, you can avail of an easy, hassle-free loan and take your business to the next level. IDFC FIRST Bank offers a minimum loan amount of Rs. 10 lakh and a maximum loan amount of Rs. 1 crore. Subject to eligibility, your loan repayment tenure can range from 12 months to 48 months. So, get funding tailored to your needs and fuel your business’ growth.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.